THERMAL SYSTEMS

BUSINESS GROUP PRESIDENT

THERMAL SYSTEMS BUSINESS GROUP

R&D AND PRODUCT MARKETING DIRECTOR

2

o Reduce cold start emissions by exhaust

heat recovery

o Ensure clean diesel and efficient gasoline

by exhaust gas recirculation cooling &

water charged air cooling

3

o + 10°C of battery cell temperature over the limit will reduce its life time by two

4

o + 10°C of battery cell temperature over the limit will reduce its life time by two

5

o + 10°C of battery cell temperature over the limit will reduce its life time by two

6

o Heat pump system & active grille shutters will become mandatory for EV range

7

8

9

€ BN

% OF SALES

10

SALES

HEADCOUNT

SALES

HEADCOUNT

SALES

HEADCOUNT

SALES

HEADCOUNT

SALES

HEADCOUNT

11

ANNUAL GROWTH OVER

2014 - 2020 PERIOD

EBITDA MARGIN IMPROVEMENT

FROM 11.1% IN 2014 TO

IN 2020

ANNUAL GROWTH FROM

2014 TO 2016

2016 EBITDA

12

13

Source: Valeo

*Strategic products and services that are positioned in growing markets or generate a significant increase in Group sales

*

2015 2021

+4%

per year

14

2016 2026

WAVE

WAVE

WAVE

15

2016 2026

WAVE

WAVE

WAVE

16

WAVE

17

WAVE

WORLD

PREMIERE

WORLD

PREMIERE

WORLD

PREMIERE

WORLD

PREMIERE

18

WAVE

19

20

WAVE

WAVE

WAVE

2016 2026

21

WAVE

22

WAVE

CHINA

& EUROPE

23

WAVE

EUROPE

CHINA

NORTH AMERICA

24

Next model M

WAVE

NEW EV

25

ACTIVE GRILLE

SHUTTERS

ENGINE COOLING

MODULEHVAC ADDITIONAL

HEATINGCOMPRESSOR

BATTERY

COOLING

VALEO THERMAL SYSTEMS

CONTENT PER CAR

BASED ON 2016 PRODUCTS

(PRICE & TECHNOLOGY)

WAVE

26

WAVE

WAVE

WAVE

2016 2026

27

o Pure Air for all

o Relaxing or energizing interior

(air temperature, humidity, aroma,

interior lighting)

o Adaptive & personalized comfort

WAVE

28

WAVE

29

WAVE

30

WAVE

31

Interior lighting Camera & driver state

monitoring, Human

Machine Interface

Thermal comfort, air quality, scents

health care and well-being

WAVE

32

WAVE

33

Valeo Thermal Systems Content per car Based on 2016 products (Price & technology)

34

35

~€

€

36

Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements". These statements include

projections and estimates and their underlying assumptions, statements regarding projects, objectives, intentions and expectations with

respect to future financial results, events, operations, services, product development and potential, and statements regarding future

performance. Even though Valeo's management feels that the Forward-Looking Statements are reasonable as at the date of this press

release, investors are put on notice that the Forward-Looking Statements are subject to numerous factors, risks and uncertainties that are

difficult to predict and generally beyond Valeo's control, which could cause actual results and events to differ materially from those

expressed or projected in the Forward-Looking Statements. Such factors include, among others, the Company’s ability to generate cost

savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions. The risks and uncertainties

to which Valeo is exposed mainly comprise the risks resulting from the investigations currently being carried out by the antitrust authorities

as identified in the Registration Document and risks relating to legal action resulting from such investigations, risks which relate to being

a supplier in the automotive industry and to the development of new products and risks due to certain global and regional economic

conditions. Also included are environmental and industrial risks as well as risks and uncertainties described or identified in the public

documents submitted by Valeo to the French financial markets authority (Autorité des marchés financiers – AMF), including those set out

in the “Risk Factors” section of Valeo’s Registration Document registered with the AMF on March 26, 2016 (under no. D.16-0211).

Valeo has recognized an expense of 99 million euros in its consolidated financial statements to cover the main risks resulting from

investigations currently being carried out by the antitrust authorities, as identified in the Registration Document, and risks relating to legal

action resulting from such investigations.

The company assumes no responsibility for any analyses issued by analysts and any other information prepared by third parties which may

be used in this press release. Valeo does not intend or assume any obligation to review or to confirm the estimates of analysts or to update

any Forward-Looking Statements to reflect events or circumstances which occur subsequent to the date of this press release.

37